All You Need to Know About the Income Tax Notice

Income tax notice is a dreaded by all taxpayers. However, if you have been served an income tax notice, there’s no need to panic. First of all, you need to find out why exactly a notice has been sent to you. To find that out, you need to check the implications of the section under which the notice has been sent to you. Income tax notices are sent as per certain sections of the Income Tax Act which will be mentioned in the notice. So here’s everything you need to know about the income tax notice: –

SECTION 139 (9)

The income tax notice under the Section 139 (9) is sent due to the following reasons: –

You have used the wrong ITR form,

You haven’t paid the entire tax amount or misinterpreted the prevailing income tax rates

You claimed a tax refund without mentioning the relevant income

The name mentioned in the ITR form does not match with the name in your PAN card

You paid taxes without listing the income and its sources

Time limit to respond: You have 15 days to write to the local income tax assessing officer. If you don’t respond within 15 days, your IT return will be considered invalid.

SECTION 245

If you get an income tax notice under the Section 245, you have filed IT returns despite having outstanding tax dues from the previous year. If you are served a notice under this section, the pending tax amount can be adjusted from your present refund.

Time limit to respond: The duration of the time limit will be specified in the notice as per the discretion of the assessing officer.

SECTION 143 (1)

The tax notice sent under the Section 143 (1) is sent for intimation purposes. The notice will tell you whether you have paid the correct amount or less/more than due.

Time limit to respond: If the tax paid is less than the due amount, you have to pay it within 30 days.

SECTION 143 (1A)

You will get an income tax notice under the section 143 (1A) if the income mentioned in your IT returns and Form 16/Chapter VIA/deductions under Section 80C/Form 26AS, don’t match.

Time limit to respond: You can respond within 30 days from the date of issue.

SECTION 148

Income tax notice under the Section 148 is sent if some of your income has not been assessed. Hence, you might be asked to file returns for a particular period for reassessment.

Time limit to respond: You will have to furnish the details of the income within 30 days.

Now that you are aware of reasons why IT notices are issued, make sure to file your returns carefully in accordance with the new income tax slabs for ay 2018-2019.